CluenexDigital Realty DLR
Digital Realty scores average on business quality (4.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Digital Realty does
Digital Realty Trust rents out data center space, power, and cooling to enterprise tenants who need to house their servers and networking gear. The company is leaning into the artificial intelligence boom through new infrastructure collaborations like its work with Blackfuel.
- What it does best
Digital Realty excels at scaling massive data center capacity, posting a gross margin of 59.5% that outpaces competitor EQIX at 51.5%. This advantage comes from deep landlord relationships and massive power procurement networks that take years to replicate.
- The main risk
Heavy capital spending is burning free cash flow, leaving a negative free cash flow of $507 million on the balance sheet. If power constraints or tenant demand stall, this high capex model risks straining liquidity further.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin is 17.0% with a net margin of 11.2%, while return on equity crawls at 3.3%. High capital expenditures drag down cash generation, meaning scale currently requires heavy external funding rather than self-sustaining cash flows.
Scale and mission-critical infrastructure lock in enterprise tenants who face massive switching costs to move petabytes of data. Its gross margin sits in the sector's bottom quartile at 29%, showing how capital-heavy real estate limits pure moat economics.
Revenue grew 10.0% to reach $6.8 billion, landing in the top quartile of its sector at the 79th percentile. History shows steady acceleration from $3.9 billion in 2020.
Total debt sits at $18.7 billion with interest coverage at 2.5x, leaving little margin for error. Free cash flow remains negative at -$507M despite narrowing from prior years, keeping the balance sheet under pressure.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $39K outside pre-planned sales.
Our sealed record on DLR
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Digital Realty scores average on the Cluenex quality check (4.8 of 10), measured against its own industry. Profitability is weak, moat fair, growth steady and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $39K outside pre-planned sales.
Oct 29, 2026.
See DLR today
- Today's verdict on DLR, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Digital Realty (DLR)”, https://cluenex.com/stocks/dlr/, data as of Oct 10, 2026.